Section 8 Company

A company is established with the primary aim of promoting various fields such as business, the arts, science, sports, research, education, religion, environmental protection, and charity. This organization is committed to using its income and profits to advance these goals, ensuring that all resources are directed towards impactful initiatives. Importantly, it prohibits the distribution of dividends to its members, reinforcing its focus on reinvesting earnings to further its mission and benefit the community at large. Through this model, the company strives to create meaningful change and support sustainable development in diverse sectors.

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Governing Act:

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  In contrast to Trust or Society, this has a number of advantages and government agencies, donors, and other stakeholders find it more credible.
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  Use of the terms Limited or Private Limited as applicable is not required.

Section 8 Registration Benefits in Jaipur

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  The absence of a minimum paid-up capital requirement is advantageous.
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  Not required to pay stamp duty at the time of registration.
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  Tax deductions are advantageous to the company’s donors under sections 12AA and 80G of the Income Tax Act.
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  Its members may also be firms.
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  Procedural compliance is generally lower than in other entities.

Section 8 Company Incorporation Requirements

The following conditions have been outlined in the Companies Act 2013 for the formation of a Section 8 company:

1. A Document is Needed:

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  Two directors at least.
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  A minimum of two or seven members are required (seven in the case of a public company and two if a private limited company is to be formed).
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  A minimum of two or three directors is required (three in the case of a public company and two if a private limited company is envisaged).
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  Members and directors self-attested PAN cards.
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  2 Passport-size-coloured photos of all the directors and members.
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  Proof of Business Address (Owned/Rent/Leased): NOC from the Property Owner, Title Deed, Property Papers, Utility Bill (Electricity, Mobile, or Telephone Bill) (Not to Exceed Two Months in Age).

2. The Necessary Information:

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  Total number of subscribed shares by members as well as the authorized and paid-up share capital of the proposed company.
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  Justification: A company will be regarded as a public company if it is founded with a minimum capital of Rs. 500000 and ten members.
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  Date of Birth and Length of Stay at Current Residential Address for Directors and Members.
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  Membership and Director Positions.
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  The intended purpose or line of business for the proposed business.
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  Members and directors’ educational backgrounds.
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  Director and Member email addresses and phone numbers.

Section 8 Registration Process in Jaipur

1. Request for Reservation Application:

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  The initial stage entails submitting an application for name reservation which can be done by paying the appropriate fees and utilizing the web services (SPICe+) accessible at www.mca.gov.in.
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  Please ensure that a name is both trademark-free and accessible on MCA before submitting an application for it.
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  There are two components to the new integrated form: i.e., A and B sections.
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  In Part A of SPICe+ a company may reserve its name or names.
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  If the applicant would like to apply jointly for a name incorporation and other integrated services, he may do so by completing Parts A and B with the required information.

2. Fill out SPICe+ Part B:

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  Upon registering the company, the second step is to complete Part B of SPICe+.
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  You can save and edit information in different sections of the aforementioned form as needed.

The following attachments must be attached while filling out the aforementioned sections:

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  Association Memorandum in Form INC-13.
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  The association’s articles.
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  The reasons for the application.
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  Suggested activity description in brief.
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  Asset and Liability Statement.
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  A statement completed on Form INC-15 i.e., a statement confirming that the draft articles of association and memorandum have been drafted in accordance with Section 8 of the Act and the rules created thereunder.
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  List of promoters (name, address, income tax PAN, or DIN).
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  A list of the proposed directors including their name, address, income tax PAN, and DIN.
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  Request for License.
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  Agreement to serve in DIR-2 as Director.

3. Make a PDF out of the SPICe+ form:

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  The SPICe+ form must be converted into a PDF format in the third step in order to attach the DSC.

4. Complete AGILE-PRO Form

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  The SPICe+ form must be converted into a PDF format in the third step in order to attach the DSC.

The following modifications have been made:

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  The EPFO and ESIC must be registered.
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  Bank account opening is required.
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  Ability to use the aforementioned form to obtain the GSTIN.
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  Additionally, the aforementioned form needs to be converted to PDF format and DSC needs to be attached.

5. Fill out forms on MCA:

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  Following the DSC affixation, the aforementioned forms must be uploaded to the Ministry of Corporate Affairs in compliance with the current procedure.

6. List First Directors and Subscribers

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  Only electronic submission of the declaration of all subscribers and first directors of the company currently filed in Form INC-9 is permitted.
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  The declaration will be automatically generated in PDF format.

Following registration, the section-8 company can readily promote its goals and the related industries whether they be business, the arts, sports, environmental safety, or something else entirely. Additionally, a company registered under Section-8 is still eligible for all the advantages of a limited company and is not required to pay dividends to its members.

Please get in touch with us if you would like more details regarding Section 8 company registration.

FAQ’s

Is section 8 company tax free?

Section 8 company is exempt under income tax Ac, 1961 if registered under Section 12A. Also, it is exempt only if it is formed for the purposed stared therein. Book your free consultancy today to enquire about the taxation of your company. 

Can I take salary from a Section 8 company?

Yes, section 8 company is allowed to pay salary/renumeration. For further enquires, book a free call with us today.

Which is better, trust or section 8 company?

Section 8 companies are for more diverse kind of activities involving NPOs whereas trust is covered under Section 8 companies. 

Can section 8 company buy a Property?

Yes, section 8 company is also a company. Hence, it is a separate legal entity that can do transactions on its own in tangible and intangible assests.

Which documents are needed to register a company under Section 8?

PAN cards proof of address for business and residential purposes and various declarations from directors and members are among the required documents.